Florida has been burdened with double-digit unemployment rates for several years. Our unemployment compensation system wasn’t built to sustain high levels of unemployment, and the unemployment comp taxes that our entrepreneurs face continue to threaten business expansion and job creation.
The Florida Chamber of Commerce has been the state’s leader on reducing the impact of unemployment compensation taxes on employers and business owners. During the 2010 Legislative Session, the Florida Chamber led the fight to prevent unemployment compensation tax increases from being implemented in 2010 and 2011. In 2011, the Florida Chamber worked to reform Florida’s unemployment comp system to reduce fraud and abuse within the system.
Another Florida Chamber-backed measure eased the burden on employers and business owners by reducing the maximum number of weeks unemployed workers can receive state benefits from 26 to 23 weeks, and began cleaning up fraud and abuse in Florida’s unemployment compensation system.
In 2012, the Florida Chamber continued the fight to stabilize and ultimately lower the cost of unemployment compensation tax increases for Florida employers.
Unemployment Compensation Tax Relief
Job creators will see immediate and significant savings in unemployment compensation taxes instead of an $817 million tax increase thanks to Florida Chamber-backed legislation passed during the legislative session.
The Florida Chamber and its partners in the business community led efforts to reduce the tax increase on this mandated coverage by almost $50 per employee, and saving employers $549 million over two years. This seismic reform effort also recreates the unemployment comp into the reemployment assistance program to help Floridians get back to work faster through additional skill set training.
The Florida Chamber thanks bill sponsors Sen. Ellyn Bogdanoff (R-Ft. Lauderdale) and Rep. Doug Holder (R-Bradenton). Governor Scott signed this bill into law on March 28, 2012.
Unless Congress extends the emergency benefits, the net effect could be a reduction in combined state and federal compensation, which once offered up to 99 weeks of benefits, to 20 weeks or less for Florida workers who lose their jobs in 2013 or beyond. Those currently drawing compensation or who apply before the end of this year are facing less drastic reductions.
Florida businesses will now see big relief on their unemployment tax bill.
Today Governor Rick Scott signed legislation to cut the increase nearly in half. In January the tax increased from $72 dollars an employee to $172. Statewide the increase would have cost Florida businesses more than $800 million.
There is no longer any doubt that Florida’s economy is moving in the right direction.
According to the latest Florida Chamber of Commerce poll of Florida voters, more than 52 percent believe job creation and economic recovery is the No. 1 priority our state should focus on.
Florida’s unemployment rate has dropped by 1.3 percentage points — from the double-digit highs of 2011 to the current 9.6 percent — since Gov. Rick Scott took office.
